GRU increases pass-through fuel charge as prices spike
Press release from Gainesville Regional Utilities
GAINESVILLE, Fla. – GRU is increasing its electric fuel adjustment from 40 mills to 45 mills, beginning Feb. 1, as winter storms have caused natural gas supply shortages across the country, resulting in skyrocketing gas prices.
GRU does not profit from the fuel adjustment. The fuel adjustment is a pass-through charge that covers the amount GRU paid for the fuel it uses to produce electricity. The utility regularly evaluates this charge and increases or lowers it based on market conditions. Winter increases are common as utilities in colder climates use more heat and increase the demand for fuel.
“We do our best to insulate our customers from these spikes in natural gas prices and the resultant impact on their electric bill through our hedging strategies,” said GRU CEO Ed Bielarski. “However, for a frame of reference, the recent storms have caused the cost of natural gas as a commodity to skyrocket from $5 to $40 per MMBtu.”
GRU takes steps to mitigate increases by entering long-term, pre-paid fuel arrangements and by maintaining a fleet of power plants that runs on a variety of fuel sources.
Since 2023, GRU has steadily decreased residential electric bills and gone from the second most expensive electric provider in the state to the middle third of the 37 utilities tracked by the Florida Municipal Electric Association.
To help keep bills down during the winter months and offset any increases related to the fuel charge, GRU recommends customers follow these cold-weather tips:
- Set your thermostat to 68° F.
- Raise your thermostat one or two degrees at a time to avoid activating expensive emergency heat strips.
- Lower your thermostat when leaving home for eight hours or more.
- Weather strip doors and caulk windows.
- Check your air filter monthly and change when needed.
- Open curtains during the day to let sunlight in and then close them at night.
- Keep your fireplace damper closed when not in use.
- Set the temperature on your hot water heater to 120°.
Additionally, customers can request a member of our trained staff to come out and inspect their windows, doors, ductwork, insulation, appliances and other equipment, and then offer customized tips for making their homes more efficient. You can learn more about this free service here.
“from $5 to $40 per MMBtu”
You can’t reasonable hedge against an eight fold cost increase. Can’t blame GRU this time
COMPLETELY INCORRECT!
Wait a minute!!! I thought be burnt up, CO2 absorbing and oxygen producing trees here in “Tree City USA” Gainesville Florida to make electricity. What in the world did we spend a Billion + dollars on if we have to still be affected by natural gas prices.
“GRU takes steps to mitigate increases by entering long-term, pre-paid fuel arrangements and by maintaining a fleet of power plants that runs on a variety of fuel sources.” The Bio -fiasco has never been managed or operated efficiently and it goes against the “save the trees” mentality.
The real efficient means of power generation once the start-up costs are overcome is nuclear.
Give the liberal loons something to get their panties further up their arses.
This weekend lower thermostats to 62 and wear layers. Burn your fireplace if you have one. All power utilities across th state are going to gouge you during peak times get you with the cold temperatures.
The fuel adjustment is different from the rate.
If you’re planning to get new siding on your home, ask them to add a layer of external styrofoam insulation sheets (and vytek) under it.
If planning a new roof, the new materials help insulate the house better (new roofing materials, metal if possible).
Shingles provide very little insulation and new no better than old. Metal roofing – none. If you have an accesible attic the most cost effective change you can make is to blow in fiberglass. Relatively inexpensive and place where most heat gain and loss occurs. Walls yes if cost effective but not that much exchange there.
Jazz got that right—heat rises. Simple physics.
Blowing sure beats laying rolls.
Since GRU is long on uneconomic base load beyond the planning horizon, it cannot profitably wholesale biomass power. Being short on peaking power with heavily subsidized solar inputs makes the matter worse. DH2 (232 MW) runs on coal.
Solar inputs go to zero @ sundown.
Well Jim, there you have it. There’s at least one idiot who actually believes solar panels can collect solar energy after sun down.
Guess they’ll never tell who they are—the neighbors will know who the village idiot is.